Charlotte home and Democrat., 1887-03-18
THE NEW INSURANCE LAW.

Below we print synopsis of the amend.
ed insurance law Of 1887.
sections l-2-Remain unchanged. They
relate to the requirements necessary for
entrance of companies into the State. No
deposit of bonds is required. Companies
| must file annual statements OF condition
| with fee of $2l for certifcation and pub
| lication. The taxes consist of two per
cent on gross premium receipts, payable
semi-annually, and $50 license fee, paya-
| BILE annually.
Sec (Which exempts from taxation
benevolent societies, such as the Royal
Arcanum, Knights Of Honor, Knights of
Pythias, Masonic and Odd Fellows asso-
ciations,is amended by adding excepting
such as canvass for business"
Secs. 4, 5, 6, 7, aud S.-Relate TO filing
statements, taxes and collateral mat er,
aud remain unchanged.
| Sec. 9-Relates to the duties of the
Secretary of the State, requiring him to
furnish copies of statements to clerks of
Superior Courts, aud is amended by al
lowing $l2 of the $2l to be paid to the
Secretary to carry out the provisions of
this section
Sec lois uuchanged-It requires the
secretary of the State to furnish the au-
ditor with statement of license fees and
taxes received, and to pay the same to the
State Treasurer.
Sec. Ills unchanged-It requires
companies to pay an annual license fee OF
$50.
Sec. l2.--Is unchanged-Companies
shall not limit the time in which suits
shall be brought to period less than one
year.
Sec. 1S-Is unchanged-It makes the
unlawful Withholding, or expending OF
the principals money by the agent fell
ony.
Sec. l4.-Is SO important that it's sub
stance is printed in full: "Every person
who either as principal or agent shall So
licit. examine or Inspect any risk, or shall
examine into, or adjust, or aid 10 adjoin-
ing any loss, or shall receive, collect or
transmit any premium of insurance. or
shall do any other act in the soliciting,
making or executing any contract of in
surance of any kind otherwise than as this
act permits, shall forfeit and pay to the
secretary of the State $50 for every such
violation, to be recovered before any jus
tice of the peace at the suit of the said
secretary" This section which has been
in force for years, is now changed so as to
make the forfeit to the Sheriff of the coun-
ty in which said act is committed. and al
lows the sheriff to have the amount so col
lected.
Sec. l5.-Is unchanged-It relates to
general agents.
Sec. 16.-Relating to contracts of insur-
ance with outside companies is stricken
out and the following in substance insert
ed, viz: sThat whenever any risk in the
State demands greater amount of insur-
ance than can be procured from compa-
MES licensed to do business in the State
can furnish, then 10 such case, any broker
or agent can procure such excess in out
side companies; such broker or agent to
make Immediate returns Of same 10 secre-
tary of State with affidavit that the said
excess could not be procured in the State
aud 2 per cent tax on the premiums thus
received.
Sec. II. Has been the bone of conten-
tion for two years past. 1t forbids the
use of the general average or floating pol
icy and the co-insurance clause which
clauses are universally iu use on cotton
policies. On the passage of this section
in 1885, the companies resorted to the use
of the alternative clause-marks and mum.
bers-which was justly regarded by, not
only the assured, but agents as well, a. a
great hindrance to insurance
Petitions, numerously signed, asked for
a repeal of section II, and we are assured
that as soon as the new law is printed and
sent to the companies, that they will at
once withdraw the marks and numbers
method, aud will insure cotton a. iu 1884
by the use Of the co-insurance, general av-
erage or floating policy. The repeal of
this section will allow our cotton factors
to procure insurancein in companies licensed
to business in this State freely as prior to
1885.